All Topics / Help Needed! / Capital Gains Rollover

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  • Profile photo of fiby30fiby30
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    @fiby30
    Join Date: 2004
    Post Count: 15
    January 20, 2004 - 5:58 am

    I am not sure what the correct term is. But I understand that when a property is sold and the capital gain is transferred directly to another investment property/properties the CGT can be deferred until further sales.

    Is this also the case if I make profit on a share/options trade and use it to fund an investment property? Or will CGT be payable?

    Darren

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    January 20, 2004 - 6:09 am

    From my understanding, CGT rollover relief is not avaiable in Australia.

    Terryw
    Discover Home Loans
    North Sydney
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Still in SchoolStill in School
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    @still-in-school
    Join Date: 2003
    Post Count: 1,844
    January 20, 2004 - 6:12 am

    Hi fiby30,

    I think your thinking of a tax defferal 1033, thats in and over in the states.

    Cheers,
    sis

    People 4get that by saving just $3 a day & investing it sensibly
    over a working life, you’ll end up with around $1 million

    Profile photo of diclemdiclem
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    @diclem
    Join Date: 2003
    Post Count: 537
    January 21, 2004 - 12:45 am

    Hi Darren,
    My understanding is a capital gain profit cannot be deferred, or “rolled over”, and is payable in the year of sale.
    However, I believe a capital gain loss is transferable to future capital gains profits.
    That’s my take on it, probably best to get pro advice.
    Cheers,
    Sue [:)]

    “Be careful not to step on the flowers when you’re reaching for the stars”

    Profile photo of PropertyAllSortsPropertyAllSorts
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    @propertyallsorts
    Join Date: 2003
    Post Count: 18
    January 21, 2004 - 2:34 am

    My accountant says that CGT on property is not payable if you lived in it for at least one year (ie- owner occupied, not classified as investment). If a business selling up, then full CGT is payable if selling in 1st year of business, but only half of the CGT is payable after 1st year of business, if you use the rollover portion ot reinvest in another business. Hope it makes sense. If not reinvesting in another business, then full CGT is still payable if seeling up your business after 1st year.

    Profile photo of fiby30fiby30
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    @fiby30
    Join Date: 2004
    Post Count: 15
    January 21, 2004 - 3:26 am

    Thanks for replies.

    I must have had the idea in my head from a Kiyosaki book. Had a thorough look at the ATO site and did not see anything relating to CGT rollover on Investment properties.

    Thanks again,

    Darren

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